Key points
- Google paid A$55 million (USD 35.8 million) fine for anti-competitive behavior in Australia.
- The fine stems from deals with Telstra and Optus to pre-install Google Search on Android phones.
- This action excluded rival search engines from access to Australian consumers. The ACCC stated the deal had a substantial impact on competition.
- Google has ceased these agreements and is cooperating with the Australian authorities.
Google has agreed to pay a substantial fine of A$55 million (approximately USD 35.8 million) to the Australian Competition and Consumer Commission (ACCC) for engaging in anti-competitive practices. The ACCC determined that Google’s deals with Australia’s two largest telecommunications companies, Telstra and Optus, to pre-install its search application on Android phones, stifled competition from rival search engines.
These agreements, active between late 2019 and early 2021, involved Google sharing advertising revenue with the telcos. The ACCC found this arrangement significantly limited the market access of competing search providers, denying millions of Australians alternative search choices.
Google admitted that the arrangement had a substantial impact on competition and has since ceased entering into similar agreements. The company’s cooperation with the ACCC has led to a joint submission to the Federal Court recommending the A$55 million penalty. While the court still needs to approve the fine, this collaborative approach has avoided protracted legal battles.
A Google spokesperson expressed satisfaction in resolving the ACCC’s concerns, highlighting that the practices in question are no longer part of their commercial agreements.
The ACCC Chair, Gina-Cass Gottlieb, emphasized the positive implications of the outcome, stating it has the potential to create greater search choice for Australian consumers and provide rival search providers with meaningful market exposure.
Telstra and Optus, both involved in the agreements, have also cooperated with the ACCC investigation and pledged to refrain from future deals with Google to pre-install its search application. This decision follows other recent legal challenges faced by Google in Australia, including a lawsuit from Epic Games and the inclusion of YouTube in a ban on social media platforms for users under 16.
This resolution marks a significant step in Australia’s ongoing efforts to regulate the tech industry and ensure fair competition. Google’s willingness to cooperate and pay the substantial fine signals a shift towards a more collaborative approach in addressing these concerns, highlighting a growing need for transparency and fairness within the digital marketplace.
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